People still don't understand the effect of currency depreciation!

Take stuff that are made in China for example, MYR has depreciated 32% against CNY. Who is going to pay for the difference in pricing?

You, me, and everyone else in Malaysia.

You may argue the price of goods did not increase. But you may not notice the quality or quantity of goods has decreased.

Good for the small number of JB business owners, while they enjoy the small profit, the rest of the nation suffer the inflation!!!

This post has been edited by neonikson1: Aug 29 2015, 12:23 AM

not yet.

when existing stocks are finished in 2-3 months time, we'll see the effect.

whether coffee, dried foods or canned food

Yes you are right.

Some other goods might shrink in size like Big Mac, probably will change name to Mini Mac in the future.

http://mykampung.sinchew.com.my/node/378455
Bad news to those who are keen to have baby. According to Sinchew daily, infant formula is expected to be increased by 35% in Nov. electrical appliances will be up by 5% to 7% next month.
The good news is, Malaysian can use Ringgit to pay for it locally.

price increase is one thing.

the bigger concern is shortage of some goods as some importers/stockists/traders may be tempted to hoard.

hopefully not.

Supply and demand. When supply is short then demand will go high. Higher demand means higher price.

This post has been edited by neonikson1: Aug 29 2015, 12:53 AM

Businesses already feel the shortage of supplies lately. Distributors are reducing the stock level in order to minimize cash flow got stuck in the form of input tax.

ah yes, that too.

when things go wrong, they all go wrong at the same time!

This month oil price in USD drop a little but MYR drop a lot.
Maybe petrol increase by RM0.15 to RM0.30. So remember to fill your tank.
Another round of inflation coming. The dominoes are all in place.

This post has been edited by anudora: Aug 29 2015, 02:39 AM

This post has been edited by MGM: Aug 29 2015, 07:31 AM


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28 Aug 2015 00:00 UTC - 29 Aug 2015 00:06 UTC
USD/MYR close:4.17200 low:4.16620 high:4.21566

USD/MYR is improving gradually in tandem with the improvement in world oil price
Will tis momentum continue?

crude gained >15% in last 2 days.

rm gained....1%!

when crude price rise, the usd weakens at the same time.

let's see next week how much more can crude gain after short covering done.

Can v establish MYR : Oil price ratio @ every 1% : 15% moving forward?

haha... that will be pathetic!

oil price-rm correlation is weak and rather small.

better watch out for bigger factors like mgs yields, china rmb effect and local topside politics.

bad news

Bank Negara's INCEIF says Malaysia 'in a crisis of confidence and credibility'
http://www.theedgemarkets.com/my/article/b...and-credibility

Our leaders continue to operate on denial mode n in isolation

Who do you think you are to call me dummy? The mark of an intelligent person rests in the ability to engage in a constructive discussion based on rational arguments, not name calling.

Mr Gray,

<<For Malaysian residents who invest in Ringgit denominated assets, there's absolutely no currency risk. Why do you bother about the value of Ringgit againts other currencies when you would spend most of it on local products?>>

Are you SMART ENOUGH to understand the foolishness of your own comment?? If not, no rational discussion is possible. The mark of an intelligent person is the ability to THINK.

Dreamer

Let me give a better illustration on Monthly candlestick chart. 1 candle = 1 month.
You will be better able to see how petrol price will increase the most next month.
You can predict based on previous month petrol price setting.


This post has been edited by anudora: Aug 29 2015, 10:55 PM


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